● Grayscale Sees a New Ethereum-first Investors Group
● MicroStrategy Offers $400 Million of Convertible Notes to Buy More Bitcoin
● Pound Drops as Anxiety About the Brexit Trade Deal Grows
Welcome to this week's edition of Overbit News, where we're going to cover some of the top new stories of the week. This edition will cover emerging themes that we continue to see in the global financial markets, mainly related to unease in the traditional markets and the institutional interest into cryptocurrency.
Our first story of the week relates to Grayscale Investments, and the growing interest their firm is seeing from Ethereum-First investors. These investors are looking to Ethereum as the first objective, and Michael Sonnenshein, a managing director at Grayscale Investments, stated: "Over the course of 2020 we are seeing a new group of investors who are Ethereum-first and in some cases Ethereum-only." Grayscale Investments is owned by Digital Currency Group and is one of the largest virtual currency groups in the world.
Ryan Watkins, a senior research analyst at Messari, stated when asked about Crypto's interest by institutional investors, "For institutional investors, they are buying bitcoin for the digital gold narrative." The narrative that is growing is, "if Bitcoin is digital gold, then Ethereum is the world's supercomputer" and this narrative might continue to play out over the coming years.
Heading into our next story, we're covering MicroStrategy’s mission of acquiring as much Bitcoin as possible. The company MicroStrategy, and its CEO Michael Saylor, have quickly gained international prominence over the past few months after the company was the first in its kind acquiring Bitcoin on its balance sheet as a publicly-traded company. This Bitcoin acquisition was nearly half a billion USD worth of Bitcoin earlier in 2020, and now the CEO Michael Saylor looks to raise an additional $400m to acquire even more Bitcoin.
This strategy turns MicroStrategy into a quasi-Bitcoin ETF on the public markets, something that is still a grey area of Policy at the US Securities and Exchange Commission (SEC), and will allow US citizens to indirectly invest into Bitcoin via MicroStrategy’s stocks. MicroStrategy announced in a press release earlier that they are planning to "privately offer $400 million in convertible notes so that it could buy more Bitcoin." This new fundraising model will be a unique first of its kind offering and will continue to make ripples throughout the Market.
Lastly, in our final story of the day, we're going to cover the ongoing Brexit Talks, that continue to leave uneasiness across the EU and the UK. Once again, this week, we saw the British Pound fall on Monday after the post-Brexit talks fell apart after investors hoped for progress towards a UK-EU deal over the weekend. We saw the GBP briefly fall nearly 1.5% against the USD in the morning, before picking up later in the day, only down 0.6% lower on the day.
These stalled Brexit talks are leaving some investors feeling cautious about the hope for a "great recovery" anytime soon. Furthermore, investors in the US are growing uneasy with the continued delay of an additional Stimulus Package being passed by the end of the year, as political infighting continues.
With the ongoing recovery from the Covid-19 pandemic continuing in the UK, EU, US and most countries across the world, this caution-first approach is a trend emerging by investors around the world. As we continue to work these recovery efforts across the globe, we at Overbit.com, we will continue to bring you the top Insights, Tools, and Products to support investors in any markets, globally.